The 3 Hidden Expenses of the June 2nd Shopify Shutdown that affect Your Business


June 2nd 2019 - the day Shopify SHUT DOWN


If you’re like me and most of the 2,270,824 Shopify Customers on June 2nd 2019 you were scrambling and failing to make sales meanwhile your stress level was nearing 2007 Brittany Spears breakdown level.

The Cost at First Glance

Outages are inevitable and come with a huge cost, lost sales and decreased revenue. Beyond missed sales outages have a deep impact on your customers LTV. If you don’t know your customers LTV, it should be the first thing on your priority list. Life time value is not the $37 a customer spends on their first purchase, it is the $185 that customer will spend if you do your job and retarget them and earn 5 sales per year, overtime that leads to the $1,850 you’ll gain by gaining brand loyalty with that customer over a 10 year span. Therefore by missing out on that one sale you also missed out on hundreds or even thousands of dollars per customer. So say you usually get 10 new customers a day, you lost $18,500 in one day and that’s just the beginning.  PLUS New customer acquisition is responsible for most of your marketing costs! 


Expense 1: Decreased ROI on Ad Spend

One of the biggest un accounted for expenses of shutdowns is the huge drop in ROI on all the failed leads generated from your paid advertisements in that period. Just imaging you’re a new potential client and you’ve decided to click on a link and that link leads to an error page do you think the next time you see that ad you’re going to click again or scroll on by? You can go ahead and count that as a lost customer because that failed link is didn’t deliver that dose of dopamine that encourage clicking behaviors on Facebook and Instagram.

Expense 2: Loss Opportunity for Retargeting

In addition to your hurting your ROI and Ad spend once a customer “lands” on a 404 or error page that failed link not only cost a sale, but you’ve also lost a great opportunity to utilize your pixel. If you don’t know what a Pixel is, STOP all your Ads until you read up on Pixels.  Pixels in short help you to see if the audience you are targeting is actually taking the desired actions on your website. Pixels are not static therefore the “learn” with every click and action taken no your website. So failed clicks are costing you valuable data and ruining your retargeting ads.


Expense 3: Missed List Building

The third and definably the most costly aspect of a down website is the missed opportunity to build your lists. That is if you have a successful opt in on your page, which everyone should have. If you need help creating opt in’s that covert we’ll cover that topic later.  Opt-in’s are the gold standard of marketing because you own a direct connection straight to your customers inbox where they will at least see your name, also its a list you own therefore you also eliminate the problems faced when Facebook and Instagram has their own shut down on March 13th 2019 that sent business and consumers alike into a panic frenzy. It another reminder about the importance of list building and back up plans.


Email versus SMS

Email and text list are so valuable because they are a direct link to your customer, a link that you own and can use as you wish. Be cautious to serve and not over sell here because your customers have the right to click unsubscribe at any time, therefore relevant and valuable content is a must. Discarding email marketing in favor of SMS marketing would be a huge mistake. Statistics indicate that, by 2019, over 90% of internet users in the US will use email at least once a month. This in 2019 and even you have several email addresses, in fact you may have one just for “spam” or opt-in’s and that sort of thing. This is where SMS come in. You phones on the other hand is within earshot right now and the second you hear a ping or see a notification pop up you’re reaching for it immediately. Did you know that 3 in 4 Americans admit to using their phone whilst on the toilet. That means they could be spending their intimate time with you if you’re using SMS right!


Next week we will be talking about how to plan and execute your backup plan for the next internet shutdown! 


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